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All Rights Reserved. Verde Ventures Pvt. Ltd. www.verde.co.in VERDE KNOWLEDGE INITIATIVE l PRESENTATION l V-KI/P/PE-09 Verde Ventures Pvt. Ltd. provides industry focused Advisory and Assurance services on Risk Management, Responsible Business, Sustainability and Business Excellence. With access to a wealth of intellectual capital, Verde delivers Assessment, Consulting, Training, and Certification in the areas like Occupational Health & Safety, Environment Protection, Corporate Social Responsibility, Sustainability, Management Systems, Organizational Development, Food Safety, Renewable Energy, Climate change, Inspection, Conformity Assurance, Training and Human Capital Development. All services are focused towards one single purpose - Improvement in Business Performance. Verde works in partnership with industrial associates, academic institutions, and research Organizations. We create powerful business solution tailor made as per customer needs with a vision to become the most trusted improvement partner of our customers. We operate in a transparent ethical value system which delivers quality & earn trust and respect from all stakeholders. Verde Knowledge Initiative has been developed to support Verde’s core value “Creating Awareness.” Offering ‘ Business Solution ’ for ‘ Risk Management ’ and ‘ Sustainable Development ’ to Investors, Buyers & Producers

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All Rights Reserved. Verde Ventures Pvt. Ltd. www.verde.co.in VERDE KNOWLEDGE INITIATIVE l PRESENTATION l V-KI/P/PE-09 About ‘ The India Sustainable Tea Program ’ The India Sustainable Tea Program is a locally developed and owned Indian sustainability tea code. It has been developed from the industry, by the industry and for the industry. This meaningful, cost-effective and practical code does not compromise on globally accepted core sustainability standards (ETP, RA, UTZ and FLO) and is based on industry realities and globally accepted sustainability principles. The program supports smallholders and estates in improving the competiveness of tea gardens by increasing the scale of production, farm-organization, processing, new technologies and supply chain development. The specific requirements related to estates, factories and smallholder groups are also mentioned in the Code.

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All Rights Reserved. Verde Ventures Pvt. Ltd. www.verde.co.in VERDE KNOWLEDGE INITIATIVE l PRESENTATION l V-KI/P/PE-09 Trustea Code About ‘ Trustea Code ’ (draft) The ‘ Trustea Code ’ (draft) is designed to evaluate the social, economic, agronomic and environmental performance of the Indian tea estates, smallholders and bought leaf factories (BLFs). It is envisioned that the compliance with the code will not only improve competiveness amongst the tea farms but will also enable them to achieve a compliance with national regulations and international sustainability standards in a step-wise approach. The verification under the code provides consumers with the assurance of responsible production and provides producers the opportunity to credibly demonstrate this to their customers. The certificate holder will either be a tea company, the bought leaf factory or the producer group. However, the code will cover all aspects of production and manufacturing. The India Sustainable Tea Program

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All Rights Reserved. Verde Ventures Pvt. Ltd. www.verde.co.in VERDE KNOWLEDGE INITIATIVE l PRESENTATION l V-KI/P/PE-09 Trustea Code The Compliance Mechanism The code is designed towards a progressive achievement of complete compliance by the Year 4. The ‘ Mandatory ’ and ‘ Other Criteria ’ have been divided into four segment, the verified unit will have to meet 100% of the mandatory control points and 50% other criteria and 50% other criteria in Year 1, 60% in Year 2, 70% in Year 3 and 80% in Year 4. If a control point is not applicable, it will have to be adjusted accordingly for percentage of control points required for verification. But a non-applicable control point will not get an additional percentage point. In the first year the entity needs to undertake external verification audits by auditors approved by the code secretariat as per the verification protocol and then such audits will be conducted every alternate year. In the years with no external audit, the verified unit must conduct internal audits and supply the audit report to Indian Tea Code secretariat. The total compliance percentage points (Mandatory and Other Criteria) are 81%, 84%, 87% and 90% in the first, second, third, fourth year respectively. The India Sustainable Tea Program

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All Rights Reserved. Verde Ventures Pvt. Ltd. www.verde.co.in VERDE KNOWLEDGE INITIATIVE l PRESENTATION l V-KI/P/PE-09 Management system and continuous improvement Product Traceability Soil Conservation & Management Water Management Fertilizers Crop Protection Program (CPPs) Food Safety Health, Safety and Welfare of the Workforce Working Condition & Labour Rights Biodiversity and Environment Management Waste & Pollution Management 1 2 3 4 5 6 7 8 9 10 11 This will help plan, implement and monitor the unit ’ s compliance with the code. An efficient system will help in reducing the cost of compliance significantly and will help assess the progress from Year 1-Year 4. It includes a policy to demonstrate compliance with the code and enable continuous improvement and designated personnel and coordinator to manage compliance. It requires map of the entity, legal requirements and its compliances, internal audit system and non-compliance redressal procedure including complaint filing process. Finally, a policy on principles of business ethics also has to be made available. Trustea Code The India Sustainable Tea Program

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All Rights Reserved. Verde Ventures Pvt. Ltd. www.verde.co.in VERDE KNOWLEDGE INITIATIVE l PRESENTATION l V-KI/P/PE-09 Management system and continuous improvement Product Traceability Soil Conservation & Management Water Management Fertilizers Crop Protection Program (CPPs) Food Safety Health, Safety and Welfare of the Workforce Working Condition & Labour Rights Biodiversity and Environment Management Waste & Pollution Management 1 2 3 4 5 6 7 8 9 10 11 This requires development of a clear and visually identifiable system and process for avoiding the mixing of verified products with non-verified products in its facilities, including harvesting, handling, processing and packaging of products as well as transportation. Documented record and a designated person responsible for the same are also required. Trustea Code The India Sustainable Tea Program

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All Rights Reserved. Verde Ventures Pvt. Ltd. www.verde.co.in VERDE KNOWLEDGE INITIATIVE l PRESENTATION l V-KI/P/PE-09 Farmer Support Centres (FSCs) The program offers producers training in the code compliance, free of charge, through three Farmer Support Centres (FSCs). The main function of the FSCs will be providing Technical support on-field Strengthening smallholder cooperatives Providing training to trainers and Providing support to estates and smallholders in preparing audits and undertaking improvements. The India Sustainable Tea Program

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